US temporarily lifts sanctions on Iranian oil at sea
What's the story
The United States has temporarily lifted sanctions on Iranian oil at sea for 30 days. The move, announced by Treasury Secretary Scott Bessent, is aimed at easing energy supply pressures amid the ongoing US-Israeli conflict with Iran. The waiver will allow the sale of Iranian crude oil and petroleum products loaded on vessels between March 20 and April 19.
Market impact
Sanctions waiver to bring '140 million barrels of oil'
Bessent said the sanctions waiver would bring "approximately 140 million barrels of oil to global markets." He emphasized that this move is aimed at relieving temporary supply pressures caused by Iran. The decision comes as Brent crude prices hit $103 amid disruptions in the Strait of Hormuz due to Iranian actions against oil tankers.
Waiver history
Third temporary sanction lift in 2 weeks
This is the third time in two weeks that the US has temporarily lifted sanctions, having previously done so for Russian oil. The move comes as Vice President JD Vance warned that consumers face a "rough road ahead" due to the war in Iran and said gas prices are up. Energy Secretary Chris Wright also said there's a "very good chance" gasoline prices could drop below $3 by summer, which had hit $3.91 on Friday.
Ongoing pressure
Bessent says Iran won't access revenue from oil sale
Despite temporarily lifting the sanctions, Bessent stressed that Iran would find it hard to access any revenue generated from this oil sale. He said the temporary authorization is "strictly limited" to oil already in transit and does not permit new purchases or production. "In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury," Bessent said.